“Xbox 2 is an Amazing Innovation”

**bustabusta196** · 02-12-2005

Speaking to high-school students at the company's campus in Redmond, Microsoft CEO Steve Ballmer talked about the Xbox successor and the next generation console war, among other topics.

In response to the first question regarding the next Xbox, Ballmer said:

"When you see the new Xbox, you're going to think it's un… -- well, let me say it politely -- unbelievable. Just unbelievable. The graphics, what it can do, the way things look, huge innovation. Rumors are that we'll see that product sometime soon. I couldn't comment, of course, on those rumors. But it's an amazing, amazing innovation."

When asked about the next-generation war and how he thinks the Xbox successor will perform against Nintendo and Sony, Ballmer said:

"I think we’re going to blow by Sony with our next box. I absolutely think we’re going to kick their backsides, so to speak. I think Xbox 1 has been a fantastic product. We’re not market leaders yet. There’s Sony, there’s us, there’s Nintendo. When we get Xbox 2 in the market, there’s going to be Xbox and the other guys."

In what it is by now his trademark style, Ballmer raised his voice until he noticed he was pulling off a Jerry Maguire, as the audience laughed and applauded. "I'm feeling a little frisky on this topic right now!" said Ballmer and concluded his answer.

This is not the first time Ballmer goes on record about the Xbox successor. Last year, Ballmer said in an interview with C|Net News.com that "We've generated something brand new. I bet we can take Sony next generation. I am betting we can take Sony in the next generation."

Finally, the same person who made the previous question asked what would make the Xbox successor stand out over Sony’s PlayStation 3 and Nintendo’s Revolution. Here is what Ballmer said.

"Why do people buy one game console over another? As we say around here, 'Duh, it's the games.' Partly they're great games because they have great graphics, they have great processing, they have great this, they've got great that, but it's about getting great games. So, there's two parts to that: Number one, we have to make sure we have a great environment, software environment for people to write games, games that connect to one another, games that are social, games that are hard-core. We've got to make sure we let people write great games. But then, number two, we, Microsoft, have to write a number of really great games to show it off. What is 'Halo 2?' It's the greatest video game ever written. It shows off Xbox 1, and we’ve got some more games coming that will be the greatest video games ever written, and they’ll show off Xbox 2."

Link: http://news.teamxbox.com/xbox/7645/X...Steve-Ballmer/

**mckmas8808** · 02-12-2005

Great thread!!! But Steve Balmer can actually kiss my NO CURSING. The very small feeling that I had that I might (2% chance) buy an Xbox2 is now gone. I will not give M$ a reason to compete with my favorite video game company which is Sony. He just pissed me off saying that they will just blow past Sony and kick that butt. I know offically hate M$ and the Xbox1 and 2 and anything else they make video game wise. I hope Ken K. can stay calm and just let the PS3 do the talking for them. Go Sony!!

**True Poet** · 02-12-2005

Not very professional. Either he's running scared by the Cell presentation or he's trying to push his hardware a tad too hard. They should hire Siren to do their marketing - at least he's got style and composure.

**bustabusta196** · 02-12-2005

Well im sure seeing that he works for microsoft hes not gonna bad mouth his own system.. just like if a Sony rep. was talking about PS3 im sure they wouldnt say nice stuff about the xbox2. So to be mad at him doesnt really matter cause its a battle for the next generation. Whoever wins wins.

**PeanutButterMunky** · 02-12-2005

We've got to make sure we let people write great games. But then, number two, we, Microsoft, have to write a number of really great games to show it off. What is 'Halo 2?' It's the greatest video game ever written. It shows off Xbox 1, and we’ve got some more games coming that will be the greatest video games ever written, and they’ll show off Xbox 2."

That is the most exaggerated and ignorant statement I've ever heard. He sounds like an 8 year old.

**bustabusta196** · 02-13-2005

"We've generated something brand new."

it's an old quote but it means something. i'm standing by my claim i've been making for a while in the forums. the "brand new" is a gaming format. all xbox games will be played on Xbox 1 or Xbox 2. there won't be Xbox 2 specific games. all this comes to you complements of XNA. that is what would help MS blow past Nintendo & Sony. they will be upgrading the console not releasing an all new one. as a result they already have an installed base of 20+ million. so MS will be profitable right off the bat. because they'll be selling boatloads of software still. they'll filter out the Xbox 1 from the markets as they bring the Xbox 2 in. XNA will allow easy transformation for play. the software on the disc will recognize it's an Xbox 1 and thus downgrade the game based on the developers preferred settings. if it's Xbox 2 it will have the full blown potential.

Siren mind commenting on this.. someone posted it on another forum. just figured id ask.

**knowitman** · 02-13-2005

That does sound very unprofessional, but anyone would say it.

He keeps saying its the games its the games and the graphics in the games.

If the PS2 supposedly has the worse graphics of any console why has it sold many more units then the Xbox. Why is it still selling faster then Sony can make it? The games. The sony exclusive games are great.

**Chaotic_King** · 02-13-2005

I really do not like that man. (That's the best that I can state it without insulting him) Honestly, what kind of comments are these? But then again, the man is nothing more than a cheerleader for the company...

http://users.pandora.be/bonte/foruma...emonkeyboy.mpg

**dude54321** · 02-13-2005

Of course he'd think the Xbox2 will be better than PS3.
And I don't think Halo 2 was the best game. (no offense.)

**Colonel Cortez** · 02-13-2005

Hehe i know what you mean, but the Ps3 will be better, but that dont really matter, i mean look at some of the graphics the Ps2 has produced, GT4,MGS3,Killzone,Jak 3(maybe not so extremley good, but it never lags glitches or does anything wrong, so clean graphics). I mean it may not be the biggest deal, but if the PS3 has the 4 CELL's or more, and the CELL is more powerfull than the Xenon CPU i can see a major diffreanse in specs. but only time will tell.

X2 · 02-13-2005

You guys kill me. Somebody finally decide to stand up to sony and saying publicly that ther systems is better and you guys think it is cr**. I can't believe what you guys are posting about the statementst that were made by Steve Balmer. Of course since he work for the MS he is going to say that there system is more powerful, but what does he look like making a statement like that and not living up to it. The only company I know does that is sony(PS2!). Have you guys notice lately that microsoft has said nothing about there hardware. And please don't count the leak specs because they are not official. MS has been totally focused on software something sony needs to be focus on instead of hardware, hardware. Just look at this. When MS came out with the xbox it was all about the hardware. Now sony coming out with the ps3 what are they shouting! hardware. Now MS totally shift gears to software this gen. I don't think you guys get it. MS got sony right where they want them. The next gen hardware from both system will have little differences in specs. It will all come down to the software.

**Cody** · 02-13-2005

I honestly don't think you guys are giving xenon enough credit, I personally think the xenon will do much better. I think the xenon will have alot of revolutionary things other then powerfull hardware, to me it seems that sony is just going the more powerfull hardware root and not making any great inovations but then again the PS3 hasnt come out yet so I don't know that for sure, I am just basing my hypothesis on Sirens hints

**siren** · 02-13-2005

I do believe that Sony is doing more than just hardware. They will most likely add in a ton of cool media playback features.

What I question is their ability to integrate any extra features they add in a way that will also benefit the game playing experience.

**Cody** · 02-13-2005

I guess I was a bit hasty in my other post because Sony has done some cool things(the eye toy for one) so I guess we will have to see

**knowitman** · 02-14-2005

What hurt Sony this generation was a combination of weaker hardware and hardware hard to program for. They have the games and innovation such as the Eye Toy.

This next generation Sony is pushing their hardware along with working hard to make it easier to develop for which was Microsoft's biggest advantage this time around.

I just think that Ballmer is a little over his head when he is trying to say they will be beating a company in the rear that beat out Nintendo, the industry standard, in less then one console cycle. The XBox was supposed to do that, but it didn't. While I beleive the Xenon will od better this generation I still don't think it will have the guts to beat out Sony. Sony knew how to enter the industry and have kept their place at the top ever since.

**The_One** · 02-14-2005

Originally Posted by Ballmer

"I think we’re going to blow by Sony with our next box. I absolutely think we’re going to kick their backsides, so to speak. I think Xbox 1 has been a fantastic product. We’re not market leaders yet. There’s Sony, there’s us, there’s Nintendo. When we get Xbox 2 in the market, there’s going to be Xbox and the other guys."

I believe you can take Sony, but I do not believe you will blow Sony just yet, at least not in one generation.

Originally Posted by siren

I do believe that Sony is doing more than just hardware. They will most likely add in a ton of cool media playback features.

By that, do you mean things such as custom music and more than simply a "DVD, CD, Blu-Ray" player? From what I can see from PS2, they're probably going to stick with the bare minimum -- being able to play DVD, CD, and BD. As you can see, I don't have too much faith in Sony in this area. They didn't do more than the bare minimum for the PSone (albeit, there really wasn't anything more to do other than add CD playback), but they could've added VCD playback for PS2

. Oh well, perhaps they simply thought adding VCD would promote movie pirating, who knows

. I really hope you're right on this one siren, 'cause I don't want just the bare minimum this time around.

**siren** · 02-14-2005

The issue at hand that everyone forgets is that Sony is a significantly better competitor than Nintendo ever was or ever will be.

Nintendo doesn't seem to understand the concept of declining market share. Back in the day they had a stranglehold on the Console market. They assumed that this could not be lost. Now they have the same view of the Handheld market.

In both cases Nintendo just rested on their laurels and refused to really drive the industry. A classic case is their refusal to launch the GBA when it was first ready to be launched. Publishers had games ready to go, Nintendo was prepared to produce the systems and even had factories geared to do so.

But yet they delayed it one year because the "Pocket GB" was selling so well. They decided to maximize their profits rather than drive the market.

Now we are looking at a device that is their Flagship device. In a lot of ways it is barely more powerful than their device which came out 5 years earlier and was ready 6 years ealier. Where as their competition is releasing something completely state of the art.

Back onto the main topic.

Yea Ballmer is a bit excitable. But consider the following. He runs Microsoft for a reason. Since he took over Microsoft has gone from having 2 of 7 division profitable and leading their respective platforms to 4 of 7 profitable, 2 leading, and 3 in 2nd place. The other 2 are still ramping up in a lot of ways.

I think he knows what he is doing.

In part he is hyping his own company and their products. A company showing confidence in their products is actually one of the best ways for them to sell it. Imagine if Ballmer went around saying he thought at best they would be a close 2nd to Sony next generation. Publishers and Developers that have signed on board would be pissed. They want to know that Microsoft is doing everything they can to sell their consoles and in term have a large consumer base to sell the games too.

So, can Microsoft beat Sony next generation?

Of course they can. They can also lose with only 5% WorldWide market share. The point is we don't know what will happen.

But I will say this. The Xbox team is far from content this generation. They want the market and are doing a lot of things to make sure they get it.

Last generation Microsoft played by the rule book which Sony wrote. They followed it almost to a tee with just a couple variations in the areas of Certification, Royalties, and development.

Next generation Microsoft is completely rewriting the rule book. They are sticking with the improved royalty structure and certification process. They are also continuing to improve their development tools. But they are also redefining what constitues a new generation. It's not just better graphics and new games. It's not just utilizing the new power for games. It is about improving the gaming experience.

Look at Xbox Live vs. PS Online. What will you notice?

It is about making it easier to get online and play online. PS online was nothing more than how Online had been done before. You are paying for your console and games, you should expect more than just mere improvements.

What else has MS done that Sony really hasn't? Asked publishers and developers what their dream scenario for the launch of a new system would be. MS's customers are not you or I or anyone on these forums. Their customers are the Publishers and Developers. That is who they have to please. At the end of the day it is about the games, and if they don't get the games then I won't even buy the system.

Sony is making their console focused at the gamers, not at the publishers and Developers. What happens in this scenario? They make something that sounds really good. This doesn't mean that it is though.

**knowitman** · 02-14-2005

Originally Posted by siren

What else has MS done that Sony really hasn't? Asked publishers and developers what their dream scenario for the launch of a new system would be. MS's customers are not you or I or anyone on these forums. Their customers are the Publishers and Developers. That is who they have to please. At the end of the day it is about the games, and if they don't get the games then I won't even buy the system.

Sony is making their console focused at the gamers, not at the publishers and Developers. What happens in this scenario? They make something that sounds really good. This doesn't mean that it is though.

That is a true statement, but I beleive it isn't totally true. You also must realize that a major part of pleasing devs is pleasing the gamers. If you can get the gamers to want a system then the developers will want to develop for that console to yield maximum profit. It is a loop. Sony is also taking more steps to please the developer this generation by making a chip that is easier to program for and by making better development tools then last generation.

**cyrusmg** · 02-14-2005

Originally Posted by siren

MS's customers are not you or I or anyone on these forums. Their customers are the Publishers and Developers. That is who they have to please.

Sony is making their console focused at the gamers, not at the publishers and Developers. What happens in this scenario? They make something that sounds really good. This doesn't mean that it is though.

I can see how MS focusing on the Developers puts them ahead in developing games and overall goodwill in the market. However, there are problems with this. If MS and the Dev's are just happy together for all their launch titles, and it ends up that very few of the games do well at launch, the relationship is going to be setback to the standard of last generation. Developers will feel as though they trusted MS too much and got burned (except for the few who do well during launch). Then they start programming for Sony and everything is back the way it was.

Of course i realize that the IF that that rests on if HUGE. IF MS does do very well at launch and most of the titles are a success, then the Dev's are going to be thrilled with how MS is doing things, and Sony will be considerably behind in the competition for games that are worth playing.

Either way, we need to see how the launch titles do in order to have some sort of way to gauge how the Generation is going to go.

**The_One** · 02-15-2005

Originally Posted by siren

MS's customers are not you or I or anyone on these forums. Their customers are the Publishers and Developers. That is who they have to please. At the end of the day it is about the games, and if they don't get the games then I won't even buy the system.

That, I agree with. Afterall, the only reason XBox didn't do too good was due to the lack of games that appeals to the general public, whereas Sony had tons of games in almost every genre there is. It really does depend on the games, not the hardware as much. This generation is a good model to look at.

**PeanutButterMunky** · 02-15-2005

The Xbox also did poorly because it sold VERY little in Japan due to its big size. If it had sold very well in that country, the sales figures may have been a lot closer to Sony's then they are now.

X2 · 02-15-2005

Nintendo, the industry standard, in less then one console cycle. The XBox was supposed to do that, but it didn't.

I totally disagree with this statement MS main purpose with the xbox was for the system to establish them in the industry so they would have next gen to look for to. You have to understand they have always been about the next gen. They knew they couldn't win this current gen.

In contrast to what siren said I totally agree. You can have the most powerful hardware and software in the world. But if you don't know to bring that power to the consumer with ease of use while still allowing them to use the full capabilities of it then what's the point.

**PeanutButterMunky** · 02-15-2005

I totally disagree with this statement MS main purpose with the xbox was for the system to establish them in the industry so they would have next gen to look for to. You have to understand they have always been about the next gen. They knew they couldn't win this current gen.

I agree. The Xbox was sort of a "test drive" for Microsoft to establish themselves in the console market. Nobody thought they could succeed, but they've done very well so far, and will succeed a great deal more next-gen, IMO. They have experience now, and they're going to use that experience to bring some heavy competition for Nintendo/Sony next time around.

**mckmas8808** · 02-15-2005

See the thing that I like about Sony is that they always look to win. When the PS1 came out they weren't saying "we are not expecting to do the best which is ok with us, we looking at next gen". No Sony wanted to come into the industry and be the best.

Same thing with the handheld. Just competing is not enough. If Nintendo sold 80 million DS's and Sony sold 20 million PSPs guess who would be pissed off, Ken K.
Sony wants to lead the handheld industry. That killer attitude mixed with a laid back respect kinda style I love it.

**cyrusmg** · 02-15-2005

I think the XBOX xenon will be a considerable thorn in the side for Sony, and if not a thorn then a full fledged knife in the side.

MS has Sony in their cross hairs and they have positioned themselves wonderfully before release. Having so many games underway is a huge benefit for MS and Sony is going to have to deliever on all their promises to keep up.

I think ballmer probably should have thought through his words a little better, but i think he is very confident and that is indeed the best way to get people interested in your product. Sony is gonna have a hard time of this next gen, and if MS is unable to deliever on the games then we have to sit and wait to see how Nintendo does. Exciting really.